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Effect Of Venture Capital On Earnings Management Of IPOS

Posted on:2016-12-17Degree:MasterType:Thesis
Country:ChinaCandidate:C ChangFull Text:PDF
GTID:2309330464971315Subject:Accounting
Abstract/Summary:PDF Full Text Request
In 2009, the launch of the GEM reduced the listing threshold of growing small and medium-sized enterprises. This situation greatly reduced the difficulty of venture capital institutions exiting from the invested enterprise, and provided excellent conditions for the development of the venture capital institutions. However, the voices of the doubt of information disclosure has been increasing. In the GEM market, in order to meet the listing requirements or raise stock prices, it is quite common that listed companies manipulate the earnings management in the IPO process to improve the earnings. The venture capital institutions as the third party certification body, due to its particularity, they will develop the management and supervision of the invested enterprise. In a certain extent,it can inhibit the earnings management behavior of invested enterprise. However, due to the short time of the GEM and the development of venture capital institutions is not mature. In order to obtain high profits, it is possibility that the venture capital institutions will promote the invested enterprises operating earnings management.This paper adopts the method of combining normative research and empirical research. On the basis of reviewing relevant theory and research literature at home and abroad,it choose 345 IPO companies listing from October 30,2009 to December 31,2012 in the GEM as the sample. Using the improved Jones model to calculate the degree of earnings management of the sample firms. To investigate the effect of venture capital institutions holding stocks on earnings management behavior of IPO companies. And further researching the effect of different ownership of venture capital institutions on earnings management of IPO companies.The results of this study show that, in the certain degree,the participation of venture capital investments can inhibit the extent of earnings management of IPO companies, and the more holding shares of venture capital institutions, the lower degree of earnings management of listing corporation. The venture capital institutions’ reputation is higher, the IPO’s earnings management degree is lower. At the same time, the more of the state-owned background venture capital institutions holding shares, The higher degree of earnings management in IPO companies, while the more of the private background venture capital institutions holding shares, The lower degree of earnings management in IPO companies.
Keywords/Search Tags:Venture Capital, GEM, IPO, Reputation, Earnings Management
PDF Full Text Request
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